§ 7811. Imposition of tobacco products tax
(a) There is hereby imposed and shall be paid a tax on all other tobacco products, snuff,
and new smokeless tobacco possessed in the State of Vermont by any person for sale
on and after July 1, 1959 that were imported into the State or manufactured in the
State after that date, except that no tax shall be imposed on tobacco products sold
under such circumstances that this State is without power to impose such tax, or sold
to the United States, or sold to or by a voluntary unincorporated organization of
the U.S. Armed Forces operating a place for the sale of goods pursuant to regulations
promulgated by the appropriate executive agency of the United States. The tax is intended
to be imposed only once upon the wholesale sale of any other tobacco product and shall
be at the rate of 92 percent of the wholesale price for all tobacco products except
snuff, which shall be taxed at $2.57 per ounce or fractional part thereof; new smokeless
tobacco, which shall be taxed at the greater of $2.57 per ounce or, if packaged for
sale to a consumer in a package that contains less than 1.2 ounces of the new smokeless
tobacco, at the rate of $3.08 per package; and cigars with a wholesale price greater
than $2.17, which shall be taxed at the rate of $2.00 per cigar if the wholesale price
of the cigar is greater than $2.17 and less than $10.00 and at the rate of $4.00 per
cigar if the wholesale price of the cigar is $10.00 or more. Provided, however, that
upon payment of the tax within 10 days, the distributor or dealer may deduct from
the tax two percent of the tax due. It shall be presumed that all other tobacco products,
snuff, and new smokeless tobacco within the State are subject to tax until the contrary
is established and the burden of proof that any other tobacco products, snuff, and
new smokeless tobacco are not taxable hereunder shall be upon the person in possession
thereof. Licensed wholesalers of other tobacco products, snuff, and new smokeless
tobacco shall state on the invoice whether the price includes the Vermont tobacco
products tax.
(b) The tax established in this section shall not be imposed on:
(1) cannabis-related supplies sold by a dispensary registered under 7 V.S.A. chapter 37
to registered patients and registered caregivers, as those terms are defined in 7 V.S.A. § 972;
(2) cannabis products, as defined in 7 V.S.A. § 831, that do not contain tobacco; or
(3) hemp or hemp products, as defined in 6 V.S.A. § 562, that do not contain tobacco. (Added 1959, No. 231, § 7; amended 1995, No. 14, § 7, eff. April 12, 1995; 2005, No. 191 (Adj. Sess.), § 38; 2007, No. 81, § 6, eff. June 11, 2007; 2009, No. 1 (Sp. Sess.), § H.38; 2009, No. 160 (Adj. Sess.), § 36; 2011, No. 45, § 22; 2013, No. 14, § 19, eff. June 30, 2013; 2013, No. 174 (Adj. Sess.), § 39; 2015, No. 54, § 50; 2019, No. 28, § 2; 2023, No. 3, § 91, eff. July 1, 2023.)